Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.20.4
Segment reporting
 6 Months Ended
Jan. 31, 2021
Segment Reporting [Abstract]  
Segment reporting

Note 11 – Segment reporting


The Company has three reportable segments: Products, Clinical Services and Therapeutics. The Company’s Products segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Services segment provides diagnostic services to the health care community. The Company’s Therapeutics segment conducts research and development activities for therapeutic drug candidates. The Company evaluates segment performance based on segment income (loss) before taxes. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative costs which are not allocable to the three reportable segments. All intersegment activities are eliminated.


Legal and related expenses incurred to defend the Company’s intellectual property, which may result in settlements recognized in another segment and other general corporate matters are considered a component of the Other segment. Legal and related expenses specific to other segments’ activities are allocated to those segments.


Legal settlements, net, represent activities for which royalties would have been received in the Company’s Products segment. Management of the Company assesses assets on a consolidated basis only and therefore, assets by reportable segment have not been included in the reportable segments below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.


The following financial information represents the operating results of the reportable segments of the Company:


Three months ended January 31, 2021   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 23,988     $ 7,478       -         -       $ 31,466  
                                         
Operating costs and expenses:                                        
Cost of revenues     11,708       3,937       -         -         15,645  
Research and development     160       633     $ 13       -         806  
Selling, general and administrative     6,425       2,593       16     $ 1,979       11,013  
Legal and related expenses     71       1       -         2,220       2,292  
Total operating costs and expenses     18,364       7,164       29       4,199       29,756  
                                         
Operating income (loss)     5,624       314       (29 )     (4,199 )     1,710  
                                         
Other income (expense):                                        
Interest     (4 )     8       -         (53 )     (49 )
Other     14       2       -         -         16  
Foreign exchange gain     -         625       -         -         625  
Net income (loss)   $ 5,634     $ 949     $ (29 )   $ (4,252 )   $ 2,302  
                                         
Depreciation and amortization included above   $ 381     $ 188     $ -       $ 66     $ 635  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     10       16       -         136       162  
Cost of revenues     14       -         -         -         14  
Total   $ 24     $ 16     $ -       $ 136     $ 176  
                                         
Capital expenditures   $ 341     $ 154     $ -       $ 11     $ 506  

Three months ended January 31, 2020   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues   $ 12,513     $ 6,871       -         -       $ 19,384  
                                         
Operating costs and expenses:                                        
Cost of revenues     10,243       3,332       -         -         13,575  
Research and development     373       503       189       -         1,065  
Selling, general and administrative     5,895       2,530       -         2,268       10,693  
Legal fee expense     38       1       -         2,021       2,060  
Total operating costs and expenses     16,549       6,366       189       4,289       27,393  
                                         
Operating income (loss)     (4,036 )     505       (189 )     (4,289 )     (8,009 )
                                         
Other income (expense):                                        
Interest     (10 )     16       -         165       171  
Other     16       7       -         49       72  
Foreign exchange gain     -         79       -         -         79  
Net (loss) income   $ (4,030 )     607       (189 )     (4,075 )     (7,687 )
                                         
Depreciation and amortization included above   $ 392       253       -         65       710  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     33       22       -         247       302  
Total   $ 33       22       -         247       302  
                                         
Capital expenditures   $ 142       18       -         -         160  

Six months ended January 31, 2021   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 45,211     $ 14,910       -         -       $ 60,121  
                                         
Operating costs and expenses:                                        
Cost of revenues     24,703       7,700       -         -         32,403  
Research and development     281       1,225     $ 46       -         1,552  
Selling, general and administrative     12,523       5,038       33     $ 3,433       21,027  
Legal and related expenses     96       6       -         2,830       2,932  
Total operating costs and expenses     37,603       13,969       79       6,263       57,914  
                                         
Operating income (loss)     7,608       941       (79 )     (6,263 )     2,207  
                                         
Other income (expense):                                        
Interest     (10 )     18       -         (108 )     (100 )
Other     29       4       -         -         33  
Foreign exchange gain             461       -         -         461  
Net income (loss)   $ 7,627     $ 1,424     $ (79 )   $ (6,371 )   $ 2,601  
                                         
Depreciation and amortization included above   $ 790     $ 373     $ -       $ 132     $ 1,295  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     19       32       -         265       316  
Cost of revenues     27       -         -         -         27  
Total   $ 46     $ 32     $ -       $ 265     $ 343  
                                         
Capital expenditures   $ 881     $ 198     $ -       $ 44     $ 1,123  

Six months ended January 31, 2020   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues – Services and Products   $ 25,293     $ 14,298       -         -       $ 39,591  
                                         
Operating costs and expenses:                                        
Cost of revenues     21,218       6,878       -         -         28,096  
Research and development     723       1,019     $ 377       -         2,119  
Selling, general and administrative     12,110       5,287       -       $ 4,435       21,832  
Legal and related expenses     88       1       -         3,667       3,756  
Total operating costs and expenses     34,139       13,185       377       8,102       55,803  
                                         
Operating income (loss)     (8,846 )     1,113       (377 )     (8,102 )     (16,212 )
                                         
Other income (expense):                                        
Interest     (22 )     34       -         396       408  
Other     19       (5 )     -         185       199  
Foreign exchange gain     -         270       -         -         270  
Net income (loss)   $ (8,849 )   $ 1,412     $ (377 )   $ (7,521 )   $ (15,335 )
                                         
Depreciation and amortization included above   $ 801     $ 503     $ -       $ 130     $ 1,434  
                                         
Share-based compensation  included in above:                                        
Selling, general and administrative.     67       44       -         410       521  
Total   $ 67     $ 44     $ -       $ 410     $ 521  
                                         
Capital expenditures   $ 289     $ 145     $ -       $ -       $ 434